Bankless

The Shadow Market Behind Anthropic's Stock

The secondary market for private company stock, particularly for highly sought-after companies like Anthropic, is a complex and rapidly evolving space. Dio Casares from Patagon explains that Patagon operates in two core businesses: proprietary investing and a client-facing business that helps clients access secondary deals. This gives them a front-row seat to the dynamics of this hot market. Casares distinguishes between two main types of secondary transactions. The first, which he terms "primary secondaries," involves new money entering the company, often through Special Purpose Vehicles (SPVs) created to invest in funding rounds. This includes employees selling their shares, which is typically approved by the company as it provides liquidity to employees and can indirectly benefit the company. The second type involves existing investors cashing out, which has historically been more difficult and often tied to IPOs or acquisitions. However, with companies staying private longer and raising significantly larger rounds, the need for secondary liquidity has grown. The FTX bankruptcy, for instance, led to a large block of Anthropic shares being sold due to the bankruptcy proceedings.